Morgan Stanley: Memory shortage intensifies; DRAM prices in Q3 may rise at least 25% quarter-on-quarter

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Golden Finance reported on July 21 that Morgan Stanley analyst Joseph Moore said that after speaking with multiple data center procurement personnel last week, he found no sign that the current tightness in memory supply is easing. On a comparable basis, prices of memory products such as DRAM are expected to rise by at least 25% from the second quarter to the third quarter, higher than Morgan Stanley and third-party institutions’ previous expectations.
Moore noted that the memory shortage could worsen further in 2027 and 2028. AI demand is consuming DRAM production capacity at scale, affecting supply in other areas such as PCs and smartphones. Morgan Stanley believes the current market is facing not only the issue of AI driving growth in memory demand, but also that insufficient memory supply itself is becoming one of the key bottlenecks limiting AI expansion.
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